Apple Blocks KuCoin, MEXC, and 12 Unreported Exchanges in South Korea

South Korea’s Financial Intelligence Unit (FIU) has successfully petitioned Apple to remove 14 cryptocurrency exchanges, including prominent platforms KuCoin and MEXC, from its App Store in South Korea.

The ban, which took effect on April 11, prevents new users in the country from downloading the applications and restricts existing users from receiving future updates.

Apple Blocks Unreported Crypto Exchanges

FIU made this move because the exchanges didn’t register with South Korean authorities, even though they tried to attract and serve Korean users. The regulator says these platforms worked in South Korea by using Korean websites, doing local advertising, and handling transactions in Korean money. The FIU believes these actions mean they should have registered.

South Korea’s strict rules against money laundering require any foreign cryptocurrency company involved in these activities to register with the FIU. Failure to do so is a crime, punishable by up to five years in jail or a fine of up to 50 million won (about $35,200).

This action comes after the FIU said last month that it would block unregistered virtual asset service providers (VASPs) and limit their access to the Korean market. This effort targets mobile apps and related websites, showing a broad plan to stop unregistered activity.

Officials say these limits protect users and lower the risk of hacking, data leaks, and asset misuse. The lack of rules on unregistered exchanges creates significant risks, especially for consumer protection and financial safety.

The FIU added that unregistered platforms often lack important user protections, like keeping customer funds separate from business accounts. This makes users more likely to lose money from fraud, bankruptcy, or service problems, and getting assets back may be very hard in these cases.

A part of the FIU report tells users to check if the virtual asset companies they use are registered and to remove their virtual assets from any unregistered companies.

South Korea to Permit Institutional Crypto Trading

According to a CoinTab report in January 2025, the Financial Services Commission (FSC) announced that companies would be allowed to invest in digital money.

Notably, the latest strict regulations limit South Korean companies’ investments in cryptocurrencies, making it difficult for them to open accounts. The FSC plans to ease these rules, starting with non-profit groups. This could create new opportunities for businesses in the country.